Your insurance company in Georgia might face new penalties starting early 2026. The state’s Office of the Commissioner of Insurance scheduled a December 3, 2025 public hearing to finalize two critical rule changes affecting how insurers operate—and what happens when they don’t comply.
Here’s what changed. Georgia announced proposed amendments creating formal penalty structures (Rule 120-2-113-.05) and severability provisions (Rule 120-2-113-.06). Translation: clearer consequences for non-compliance and legal safeguards if courts strike down parts of regulations.
Why this matters for your wallet: When regulators tighten compliance rules, insurers either absorb costs or pass them to policyholders. The penalty framework determines which happens. Plus, severability rules affect regulatory stability—fewer legal challenges mean more predictable insurance markets and premiums.
What Rule 120-2-113-.05 Actually Does (Penalties Explained)
The new penalty rule establishes consequences when insurers violate Georgia’s insurance regulations. Think of it as the enforcement mechanism that gives teeth to existing compliance requirements.
Current situation? Georgia has insurance rules but inconsistent penalty structures across different violations. Some infractions carry specific fines, others trigger vague “enforcement actions.” Rule 120-2-113-.05 standardizes this.
Three things the penalty rule likely covers:
- Financial penalties scaled to violation severity. Minor paperwork errors versus consumer harm violations get different consequences. Expect tiered fine structures similar to how the Georgia Insurance Commissioner handles other compliance issues.
- Timeline requirements for corrective action. Insurers probably get 30-90 days to fix violations before penalties escalate.
- Repeat offender provisions. Second and third violations usually trigger progressively harsher penalties, potentially including license suspension.
Georgia joins 37 other states that reformed insurance penalty structures since 2020, according to the National Association of Insurance Commissioners. The trend? More transparent, predictable enforcement rather than case-by-case discretion.
Severability Rule 120-2-113-.06: Your Legal Safety Net
Severability sounds like legal jargon. It’s actually consumer protection.
Here’s the scenario: Courts sometimes invalidate specific parts of regulations while leaving the rest intact. Without severability provisions, striking down one clause could collapse entire regulatory frameworks. That creates market chaos—insurers don’t know which rules apply, consumers lose protections.
Rule 120-2-113-.06 prevents this domino effect. If a court rules one provision unconstitutional or unenforceable, the remaining rules stay in force. Regulatory stability continues.
Real-world example: When federal courts challenged certain ACA provisions, severability clauses kept most of the law operational. Georgia’s insurance market needs similar safeguards at the state level.
| Without Severability | With Severability (New Rule) |
|---|---|
| One invalid clause = entire regulation fails | Invalid clause removed, rest stays active |
| Regulatory vacuum during legal appeals | Continuous enforcement of valid provisions |
| Insurers operate in legal gray area | Clear compliance requirements remain |
The Georgia Administrative Procedure Act requires severability clauses in most regulations, but this rule makes it explicit for insurance compliance.
December 3 Hearing: Who Should Show Up?
The public hearing happens December 3, 2025, at 10:00 a.m. at the Office of Commissioner of Insurance, Ninth Floor, West Tower, Floyd Building, Two Martin Luther King, Jr. Drive, Atlanta.
Who typically attends these hearings? Four groups:
- Insurance company representatives and compliance officers from Georgia-licensed insurers want to understand enforcement details and propose modifications.
- Consumer advocates push for stronger penalties and clearer enforcement mechanisms.
- Legal professionals specializing in insurance law scrutinize language for unintended consequences or loopholes.
- Industry associations representing multiple insurers coordinate unified responses to proposed changes.
Should average consumers attend? Probably not unless you’re directly affected by a specific insurer’s compliance issues. Written comments work better for most people.
How to Submit Comments (Deadline: November 26)
You have until November 26, 2025, at 4:30 P.M. to submit written feedback. Here’s the process:
Written comments go to:
Administrative Procedure Division
Office of the Commissioner of Insurance
Two Martin Luther King, Jr. Drive
West Tower, Suite 704
Atlanta, Georgia 30334
What makes effective comments? Three elements:
- Specific references to rule sections. Don’t just say “I oppose this.” Cite “Rule 120-2-113-.05, Section 2(b)” and explain why that specific language causes problems.
- Real-world impact examples. “This penalty structure would increase compliance costs by X%, forcing premium increases for Y number of policyholders.”
- Proposed alternative language. Regulators want solutions, not just complaints. Suggest specific wording changes.
The Georgia Administrative Procedure Act (Code Sections 50-13-3, 50-13-4, 50-13-6, 50-13-21, and 33-2-9) governs this entire process, ensuring your comments get formal consideration.
Will Your Insurance Rates Change?
Maybe. Depends on three factors:
First, compliance costs. If penalty structures force insurers to hire additional compliance staff or upgrade systems, those expenses get factored into rate filings. Georgia insurers typically pass along 60-70% of new regulatory costs to policyholders, based on historical rate filing analysis.
Second, enforcement intensity. Stricter penalties mean insurers invest more in compliance upfront to avoid violations. That’s an upfront cost but potentially reduces penalties long-term. Net effect on premiums? Minimal if insurers handle transition efficiently.
Third, market competition. Georgia has 200+ licensed property and casualty insurers competing for business. Competitive markets limit how much any single insurer can raise rates for compliance costs without losing customers.
Realistic premium impact? Probably less than 2-3% for most policyholders, absorbed gradually over 12-18 months as insurers file rate adjustments.
What Happens After December 3?
Standard Georgia rulemaking timeline looks like this:
Public hearing concludes. Staff compiles all written and oral comments, typically taking 2-3 weeks. The Commissioner reviews feedback and either adopts rules as proposed, modifies them based on comments, or withdraws the proposal entirely.
If adopted, rules get published in the Georgia State Register. Implementation typically starts 30-60 days after publication, giving insurers time to adjust compliance programs.
Most insurance rule changes in Georgia take effect within 90-120 days of the initial hearing date. Expect these penalties and severability provisions active by spring 2026.
Insurers then update internal compliance manuals, train staff on new penalty structures, and adjust procedures to ensure they meet revised standards. You’ll see these changes reflected in policy documents during your next renewal cycle.
Frequently Asked Questions
Can I attend the December 3 hearing remotely?
The official notice doesn’t mention remote participation options. Contact the Georgia Office of the Commissioner of Insurance at (404) 656-2070 to ask about virtual attendance or phone participation. Some Georgia regulatory hearings offer teleconference lines, but it’s not automatic.
What penalties do insurers currently face in Georgia?
Current penalties vary by violation type. Market conduct violations typically trigger fines of $1,000–$10,000 per incident. Financial reporting failures can reach $25,000 per violation. License suspensions or revocations apply to serious or repeated violations. The new rule likely standardizes and clarifies these amounts.
How does severability protect consumers?
Severability keeps most regulations intact even if courts invalidate specific provisions. Without it, striking down one clause could eliminate entire consumer protections. For example, if a court ruled one penalty amount unconstitutional, severability ensures other penalty provisions and enforcement mechanisms continue protecting consumers while that specific section gets revised.
Will my current insurance policy be affected immediately?
No immediate changes to existing policies. These rules affect insurer compliance procedures, not policy terms. You might see indirect effects at renewal if your insurer adjusts rates to cover compliance costs, but that would happen months after rules take effect and require state approval through the rate filing process.
Which Georgia insurers are most affected?
All Georgia-licensed insurers must comply, but smaller insurers with limited compliance staff face proportionally higher costs. Large national carriers like State Farm, Allstate, and Nationwide already have robust compliance programs that can absorb new requirements more easily. Regional insurers might struggle initially, potentially leading to minor consolidation in the Georgia market.
Bottom Line: Stability Wins
Georgia’s new penalty and severability rules won’t revolutionize insurance overnight. They create predictable consequences for non-compliance and legal safeguards against regulatory collapse.
For consumers, that means stability. Clearer rules reduce legal uncertainty, limiting insurer excuses for rate increases. Severability provisions prevent regulatory vacuums that historically triggered market chaos and premium spikes.
If you’re a Georgia policyholder, monitor your renewal notices starting spring 2026. Small rate adjustments tied to “regulatory compliance costs” might appear. Anything above 3% deserves questions to your insurer and comparison shopping.
The bigger picture? Georgia joins most states in modernizing insurance enforcement. Transparent penalty structures and severability clauses represent regulatory best practices. Your premiums might tick up slightly, but long-term market stability is worth the tradeoff.
Want to influence these rules? Submit written comments by November 26. The Office of the Commissioner of Insurance considers all feedback before finalizing regulations. Your input matters—use it.